According to industry experts, despite growing interest in renewable energy, global demand for oil and gas continues to increase. With a growing population and expanding economy, petroleum products remain essential to support everyday life in America.
Oil Prices and Demand Are Rising
According to Steve Ziemke, a senior vice president at Gulf Coast Western, the growing oil demand will sustain high prices for at least the next decade. Although interest is growing in alternative energy sources like wind and solar, the technology for wide-scale renewables adoption still needs improvement. Gas-powered vehicles and plastics manufacturing are heavily reliant on petroleum. With oil demand hitting record levels in 2023, prices will likely remain high.
This outlook is positive for oil and gas companies. Due to continually rising oil demand, most industry executives predict growth and profits over the coming year. The high prices commanded for oil and gas should also spur new development.
Jobs and Economic Growth
The oil and gas industry is a significant employer nationwide. Exploration, drilling, production, refining, and transportation require an extensive workforce. This industry supports millions of high-paying jobs, from engineers to truck drivers to construction workers.
More jobs are created as oil and gas production expands to meet demand. The associated economic activity ripples outward to support communities across the country. Significant tax revenues from the oil companies further enable states and municipalities to invest in infrastructure, education, and public services.
Technological Innovation
According to Ziemke, the oil industry also catalyzes new technological developments. Companies dedicate resources toward enhancing exploration techniques, improving safety and efficiency, and reducing environmental impacts. These innovations frequently have applications across other industries as well.
Continual innovation is crucial for accessing new reserves as easily accessible oil fields get depleted. Horizontal drilling and hydraulic fracturing techniques have allowed access to previously untenable shale deposits. Further technological improvements will be essential to meet future demand.
Wide Reliance for Everyday Life
Modern life is utterly dependent on hydrocarbons. More than 50% of oil production is used for plastics, chemical manufacturing, transportation, and other fundamental needs. Reliable access to oil and gas enables nearly every sector of the economy, from agriculture to retail.
With America’s population expanding, growing energy needs must also be met. Affordable and available gas, fuel, and petroleum products will continue to be the foundation for economic activity. According to Ziemke, even as alternative energy capacity expands, traditional hydrocarbons are expected to supply most U.S. energy requirements for decades,
To Wrap It Up
Rather than fading into obsolescence, oil and gas remain essential to the American way of life. There are no current energy sources capable of entirely replacing traditional hydrocarbons. As the economy and population keep expanding, reliable oil and gas production will be crucial to serve these increasing fundamental needs for the foreseeable future.
